T = Trends for a Stock’s Movement

Tesla Motors designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. The company also provides services for the development of electric powertrain systems and components, and sells electric powertrain components to other automotive manufacturers. It markets and sells its vehicles through Tesla stores as well as over the Internet. Consumers and companies are looking to save at the pump, and what better way to do so than with electric vehicles?

After about seven months of accruing back orders in the world’s largest automotive market, Tesla is ready to start shipping its Model S sedans to Chinese buyers. CEO Elon Musk said that the company is hoping to start building the cars regionally within three to four years. Musk, who was speaking at the Geekpark Conference in China on Monday, added that Tesla is building a “big” network of charging stations in the country, including superchargers in Beijing and Shanghai, Bloomberg quoted him as saying. “At some point in the next three or four years we’ll be establishing local manufacturing in China,” Musk said. “China is very important to the future of Tesla. We’re going to make a big investment in China in terms of charging infrastructure.”

Tesla’s Model S sells in the country for about $118,000, due to a hefty 25 percent import tax imposed by China. Musk said that producing the cars locally will help drop the costs considerably and also circumvent the tariff altogether. Musk has said that sales in China should meet the demand seen here in the U.S. as early as next year. Analysts like Finbarr O’Neill, the president of J.D. Power & Associates, are cautiously optimistic about Tesla’s potential in China. “I think they can sell quite a few here in the market,” he told Bloomberg. “There’s a lot of talk about Tesla but, you know, their numbers are not huge. Mr. Musk has been successful in many fields. I wish him luck, but there’s a limit to every market.”